WEWORK is giving up space in two prime locations in Singapore, underscoring the company’s challenges in one of its most promising markets.
One co-working space spanning the 17th to 20th floors at Manulife Tower along Singapore’s 8 Cross Street has ended operations. Another three-floor space in an office building at 83 Clemenceau Avenue on the city center fringe will close next year.
A WeWork spokesperson said in a statement that despite Singapore being a “priority market,” it has “made the difficult decision” not to renew leases at the two locations. The company remains committed to spaces at 12 remaining buildings in the city-state “well into the future,” the spokesperson added.
Representatives for the owner of the 28-story Manulife Tower in the financial district, Canadian insurer Manulife Financial Corp, didn’t respond to emailed requests for comment.
A representative for the 18-story office tower at 83 Clemenceau Avenue near Clarke Quay, a nightlife and retail venue, also didn’t respond to a request for comment. WeWork occupies space spanning 4,760 sqm at the building, which is owned by United Engineers, a subsidiary of Singapore-based Chinese developer Yanlord Land Group.
Singapore, which had seen a mass return to the office since the pandemic, had been a rare bright spot for the co-working firm that’s seeking to recover from its fall from grace. The New York-based company was cleared to exit bankruptcy in May.
WeWork’s latest setback dovetails with a spike in prime office vacancies, which jumped to the highest level in more than two years in the third quarter, according to data from property consultancy Jones Lang LaSalle Inc.
Some office tenants have also been looking to consolidate space to save on costs, at the expense of co-working offices. Earlier this year, Chinese technology giant Tencent Holdings gave up a WeWork space at 30 Raffles Place in the city’s financial district after it opted to bring together employees at a new office in another prime tower.
In April, WeWork announced that it “plans to remain in its current buildings in Singapore for the foreseeable future,” after completing its lease negotiations and real estate rationalisation process in the country. BLOOMBERG
